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Trying to create new vm - "The handle is invalid"

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No matter what type of vm I try to create I get a "The handle is invalid" on the final step of the process.

Anyone have any ideas?

Host -2k3 Server Ent x64

Updated to 1.01 vm server

checked AMD 64 X2 cpu with VMWare tool (to run 64 bit os's) and it passes.


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